Hawai’i Energy Efficiency Incentives and Rebates
By Mark Becker, Solar Consultant and Contrator
Hawaii is unique with its legends surrounding the sun. The demigod “Maui” is said to have lassoed the sun in order to slow it down and make the days longer on the islands. Hawaii is unique in other ways as well; it has the highest electric rates in the nation. To add insult to injury, Molokai’s electric rates are among the highest in Hawaii. Large amounts of solar radiation coupled with large electric bills make Moloka’i one of the most suitable places on earth for solar electric and solar thermal systems.
Solar electric photovoltaic power (PV) and solar thermal power are proven technologies capable of efficiently harnessing power from the sun.
There are local loan programs, utility rebate programs, and state and federal tax credit programs that reduce the cost of energy efficiency improvements. Grants are available for businesses and agriculture as well.
I’ll briefly outline some of the incentives in this article. Take advantage of them!
A 30% Federal tax credit for PV and thermal (no limit) and a 35% state tax credit (maximum of $5000 for PV, $2250 for solar thermal) are available.
Net Metering: Net metering allows solar PV to be financially viable and is available on a “first-come, first-served” basis to customers that generate electricity using solar PV power. Solar power creates electricity during the day. Under this agreement, MECO credits you the excess power for up to a year. Unfortunately, Kaunakakai has been removed from this program. Southeast Moloka’i is on the verge of being removed from this program. According to MECO, this is due to “saturation of the grid” and “quality of power” issues. If you live in southeast or other areas of Moloka’i, you still have time to install solar PV, but this window of opportunity may be closing (hopefully temporarily) as more systems are installed. MECO may reinstate the approval of solar PV in affected areas if studies prove that power quality remains at their high standard.
A new program, know as the production incentive, or the “feed in tariff” allows qualified customers to receive a fixed rate per kWh for power produced from solar PV over a 20-year contract. Yes, you will be able to sell excess power back to the utility!
A residential program for solar water heater rebates offers $750 for MECO customers. As of January 1, 2010, this rebate is not available for systems installed on new residential construction because new building codes require installation of solar thermal systems.
MECO administers a solar thermal loan program offering a $1,000 rebate for solar thermal installations. Residential homeowners with existing electric water heaters are eligible and must provide a down payment equal to 35% of the system cost. Loan payments are based on expected monthly savings. Following the average down payment of $1650, you will not incur any additional costs. Once the loan is paid, the average family will be saving $600 annually.
In summary, there are potentially 3 large rebates/credits you can receive for solar thermal, and 2 credits for solar PV.
Trivia: Non-residents do qualify for the Hawaii state tax credit for PV and solar thermal.
Grid connected solar PV does NOT require batteries; batteries are typically not desirable or required unless not connected to the grid/MECO.
MECO has an “electric car-charging rate”; it is currently 50-75% less than average electric rates. Why buy gas when you can “refill” your car for less than $3.00? Of course, when you purchase an electric vehicle, utilize the Federal tax credit! ($2250 to $7500).
Virtually all energy star appliances qualify for a $50-$75 utility rebate.
One area of improvement; why doesn’t Moloka’i have a property tax exemption for energy efficient improvements as Honolulu does? This is a good question to pose to your elected representatives.
For credits and rebates: www.dsireusa.gov
